Paytm is on the verge of securing approval from the Indian government for its investment in the payments gateway arm, Paytm Payments Services Ltd. The government’s stance became more favorable after Paytm’s Chinese shareholder, Ant Group, reduced its stake in the Indian firm. An approval is imminent, signaling the government’s support, even as regulatory scrutiny on Paytm intensifies. The Reserve Bank of India (RBI) previously held back approval for Paytm Payments Services to become a payments aggregator and mandated the unit to seek government permission for a past investment from Paytm. The application is pending before the RBI, and Paytm is facing increased regulatory and investor scrutiny.
Paytm Nears Approval for Key Arm Investment After Ant Cut
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